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Absentee Landlords and Land Tenancy

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  • Maertens,Annemie
  • Siddharth Sharma
  • Khamis,Melanie

Abstract

Internal migration and structural transformation are strongly interrelated. This paper uses Indian data spanning 2001–13 to examine a little-known aspect of this relationship: how migration affects agricultural land rental contracts. Building on anecdotal evidence and theory, the paper hypothesizes that as landlords migrate away, their choice of contract for tenant-cultivators changes from sharecropping to fixed rent. Using a shift-share instrument that exploits information on bilateral migration flows between districts, the paper shows that migration increased fixed rent tenancy and contract formalization. Given the continued importance of agricultural land rental markets, these findings have significant implications for rural efficiency and equity in developing countries.

Suggested Citation

  • Maertens,Annemie & Siddharth Sharma & Khamis,Melanie, 2024. "Absentee Landlords and Land Tenancy," Policy Research Working Paper Series 10865, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10865
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    File URL: https://documents.worldbank.org/curated/en/099714508122428668/pdf/IDU-58ac0ba8-cebc-4b9c-a2c5-74166a570eb1.pdf
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